Co-working surge in HK sees a landmark leasing deal

HONG KONG: One of Hong Kong’s biggest co-working leasing deals has added to an explosion in the number and size of such agreements.

Start-up Campfire Collaborative Spaces leased three floors of the Harbourfront Landmark building in western Kowloon from private equity firm Pamfleet Real Estate Fund LP, according to Colliers International Group Inc, which brokered the transaction.

Record co-working deals in Hong Kong in 2018 show their growing role in the office market amid the rise of companies such as WeWork Cos, the US firm reported to have claimed a valuation of US$35bil. Co-working companies accounted for 10% of new lettings on Hong Kong Island last year, according to Jones Lang LaSalle Inc.

“For the next six to 12 months, we will continue to see co-working operators expanding in the market,” said Denis Ma, head of Hong Kong research at JLL. “A lot of operators are trying to gain market share because it’s very much a new sector.”

The firms’ appetite for space is increasing dramatically, with 55,000 sq m leased in grade A and grade B buildings citywide this year, 64% more than in all of 2017, according to Colliers.

”There will be continued growth although market dynamics in Hong Kong mean yearon-year take up will unlikely match the heights” of 2018, said Jonathan Wright, Colliers International’s director of flexible workspace services. — Bloomberg